Correlation Between Dalian Zeus and Cambricon Technologies
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By analyzing existing cross correlation between Dalian Zeus Entertainment and Cambricon Technologies Corp, you can compare the effects of market volatilities on Dalian Zeus and Cambricon Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dalian Zeus with a short position of Cambricon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Zeus and Cambricon Technologies.
Diversification Opportunities for Dalian Zeus and Cambricon Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dalian and Cambricon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Zeus Entertainment and Cambricon Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambricon Technologies and Dalian Zeus is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dalian Zeus Entertainment are associated (or correlated) with Cambricon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambricon Technologies has no effect on the direction of Dalian Zeus i.e., Dalian Zeus and Cambricon Technologies go up and down completely randomly.
Pair Corralation between Dalian Zeus and Cambricon Technologies
Assuming the 90 days trading horizon Dalian Zeus is expected to generate 1.33 times less return on investment than Cambricon Technologies. But when comparing it to its historical volatility, Dalian Zeus Entertainment is 1.3 times less risky than Cambricon Technologies. It trades about 0.35 of its potential returns per unit of risk. Cambricon Technologies Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 57,200 in Cambricon Technologies Corp on November 28, 2024 and sell it today you would earn a total of 21,838 from holding Cambricon Technologies Corp or generate 38.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Zeus Entertainment vs. Cambricon Technologies Corp
Performance |
| Timeline |
| Dalian Zeus Entertainment |
| Cambricon Technologies |
Dalian Zeus and Cambricon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Zeus and Cambricon Technologies
The main advantage of trading using opposite Dalian Zeus and Cambricon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Zeus position performs unexpectedly, Cambricon Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cambricon Technologies will offset losses from the drop in Cambricon Technologies' long position.| Dalian Zeus vs. Ming Yang Smart | Dalian Zeus vs. 159681 | Dalian Zeus vs. 159005 | Dalian Zeus vs. Loctek Ergonomic Technology |
| Cambricon Technologies vs. Giantec Semiconductor Corp | Cambricon Technologies vs. Anhui Gujing Distillery | Cambricon Technologies vs. Unisplendour Corp | Cambricon Technologies vs. HeNan Splendor Science |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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